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Ch 6 Exercise 2 QA

The document details a bank reconciliation statement for Jade Limited as of 31 March 20X6, highlighting discrepancies between the cash book and bank statement. Adjustments include unpresented cheques, unrecorded lodgments, and various bank charges and errors. The final adjusted cash book balance is $13,008, leading to a reconciled bank statement balance of $23,134.

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7 views

Ch 6 Exercise 2 QA

The document details a bank reconciliation statement for Jade Limited as of 31 March 20X6, highlighting discrepancies between the cash book and bank statement. Adjustments include unpresented cheques, unrecorded lodgments, and various bank charges and errors. The final adjusted cash book balance is $13,008, leading to a reconciled bank statement balance of $23,134.

Uploaded by

fuyunshen
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Bank Reconciliation Statement/P.

Exercise 1

On 28 February 20X6, the bank statement for Jade Limited showed a credit balance of $12,848
and the cash book showed a debit balance of the same amount on the same date. At 31 March
20X6, the cash book showed totals of receipts and payments of $147,980 and $152,408
respectively.

The entries in the cash book were checked against the bank statement for the month of March
and the following were found:
(i) Cheques issued amounting to $15,098 had not been presented to the bank for payment.
(ii) Lodgments totalling $4,972 for March were not recorded by the bank until 2 April.
(iii) A cheque of $10,050 banked on 6 March 20X6 was recorded as $10,500 in the cash
book.
(iv) These items were shown on the bank statement but not in the cash book:
(1) Bank charges of $87;
(2) A direct deposit of $8,919 lodged by Charles Limited;
(3) Dividend received on investment of $275;
(4) Dishonoured cheques from Better Limited in the amount of $964; and
(5) An autopay item of $2,462 for a gas bill.
(v) $643 paid into the bank had been entered twice in the cash book.

Required:
(a) Show the necessary adjustments to be made in the cash book on 31 March 20X6.
(b) Prepare a bank reconciliation statement as at 31 March 20X6, commencing with the adjusted
cash book balance.
Bank Reconciliation Statement/P.1

Answer 1
(a) Jade Limited
Cash Book - Bank Column Only
20X6 $ 20X6 $
Mar 31 Balance b/d (wkg 1) 8,420 Mar 31 Suspense - (iii) 450
Charles Limited (iv 2) 8,919 deposit overstated
Dividend Income (iv 3) 275 Bank Charged (iv 1) 87
Better Ltd - (iv 4) 964
cheque dishonoured
Gas - Autopay (iv 5) 2,462
Suspense - (v) 643
deposits entered twice
Balance c/d 13,008
17,614 17,614

(b)
Bank Reconciliation Statement as at 31 March 20X6
$
Adjusted Balance at Bank as per Cash Book 13,008
Add: Unpresented Cheques (i) 15,098
28,106
Less: Bank Lodgment but not yet recorded by the bank (ii) 4,972
Balance at Bank as per Bank Statement 23,134

Working 1
Bank Balance: $
As at 28 February 20X6 12,848
Add: Total receipts 147,980
160,828
Less: Total payments 152,408

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